People in Nghe An are taking advantage of the situation to sell gold rings and lock in profits.

On the morning of March 10th,gold priceIn Nghe An, gold and silver businesses listed prices at 79.50 - 79.70 million VND/ounce (buying) and 81.95 - 82.05 million VND/ounce (selling) for SJC gold bars; and 67.80 - 68 million VND/ounce (buying) - 70.80 - 71 million VND/ounce (selling) for 9999 gold rings. These prices are considered a new record for gold, especially for 9999 gold rings.

Ms. Trinh Ngoc Anh, in charge of 9999 gold ring transactions at Kim Thanh Huy gold and silver shop (Cao Thang Street, Vinh City), said: “This is the first time plain gold rings have exceeded 70 million VND/ounce. This is the highest price ever, therefore, compared to the price of gold rings on the Day of the God of Wealth, it has increased by 4 million VND/ounce.”

Gold prices have risen sharply, prompting many people to sell and lock in profits. Ms. Trinh Thi H. (Dai Dong, Thanh Chuong) bought 5 taels of plain gold rings on January 15th at 65.2 million VND/tael, and now sells them at a shop for 68 million VND. Calculated over half a month, with an investment of over 300 million VND in gold, she made a profit of 14 million VND. This is dozens of times higher than bank interest rates.

“I had some spare money after Tet (Lunar New Year), and at that time, bank interest rates were too low, only 4% per year. That meant with 300 million VND, I would only receive 1 million VND in interest each month. Therefore, I bought gold to hoard. Initially, I intended to buy gold to ‘preserve’ my money from devaluation, not to buy and sell it. But now, when…”gold ring price"Since the price went up and I calculated it would be profitable, I sold it and will reinvest when the price of gold drops," Ms. H said.

Despite it being the beginning of the year, a considerable number of people have been observed selling gold. Some have just bought gold during the God of Wealth festival, while others have been hoarding it for a long time and are selling it now to lock in profits when they see favorable gold prices.

“The total amount of gold we bought for our wedding from 2020 to now is 4 taels, all plain 9999 gold rings. Now, with the high price of gold rings, my wife and I have decided to sell them to pay off the remaining bank loan for our apartment. In 2022, if we sold the gold to cover the apartment purchase, 4 taels would only fetch about 200 million VND, so we decided to buy it on installments, paying the bank interest.”

"Now, after a year, the price of gold rings has increased significantly (nearly 18 million VND/ounce compared to 2022), so I've decided to sell them. Compared to the interest I paid, the profit from selling gold is many times higher," said Mr. Hoang Duy Binh (a resident of Cua Tien apartment building, Vinh City).

Not only in Vinh city, but the gold market is also quite vibrant in rural areas. "In previous years, at the beginning of the year, transactions were mainly selling, with most people buying gold. This year, especially in the last two days, the number of people coming to trade has been very lively."

"People are mostly selling gold rather than buying because the price is quite high. Accordingly, the majority of people are selling 9999 gold rings," said Ms. Nguyet Cuong, the owner of a gold and silver business in Dien Chau town.

Gold ring prices have risen to record highs, but the buy-sell spread remains very large. Most long-term buyers are making substantial profits, while short-term buyers are only making small gains.

According to forecasts, gold prices will continue to fluctuate in opposite directions in the coming period. Therefore, according to experts, while the domestic gold market follows global trends, there are still some anomalies. Specifically, the movement of SJC gold only benefits gold distributors in the market, while small investors and ordinary people buying gold will find it difficult to achieve profits.

On the other hand, the gold market is heating up due to heightened geopolitical tensions. At the same time, investors should exercise caution when investing in gold because with strong wage growth in the US, expectations of a Fed interest rate cut are still far off. Therefore, gold could reverse course and fall sharply at any time.